Kivela’s Bill In Detroit Bankruptcy Legislation

Marquette, MI – (Great Lakes Radio News) – The Michigan House has approved an 11-bill package that would provide $195 million to help Detroit transition out of bankruptcy and require oversight of the city’s finances.

The Republican-led chamber approved the legislation on a bipartisan vote, adding the state’s money to $466 million committed by several foundations and the Detroit Institute of Arts.

The legislation creates a nine-member commission to oversee the city’s finances for at least 13 years.

109th District State Representative John Kivela included House Bill 5566 in the package to require a Detroit Chief Financial Officer be appointed by the mayor, subject to the approval of the state oversight commission.

The bill adds the CFO would supervise the city’s financial and budget activities and requires Detroit to use generally accepted accounting practices, and adopt budget processes similar to the state’s, which are intended to avoid overspending.